A Dynamic Macroeconomic Model for the US Telecommunications Industry

Dynamic models have been used in most businesses serving different purposes. The increased changes of the Telecommunications environment have created a dynamic industry emerging new dynamic economic models. We investigated the Telecom industry by conducting macroeconomic and infrastructure analysis. However, this paper uses recent data from the Telecommunications industry to reveal the infrastructure trends and predict the US wireless growth. The analysis is focused on several factors such as the infrastructure described by the Teledensity, the employment and the Telecom revenues in comparison with the Gross Domestic Product (GDP). The purpose of this analysis is to understand the industry’s behavior during a specific period of time, 1984-2003, propose an appropriate economic dynamic model, wireless oriented that identifies the current driving forces and detects the impact of some critical events and trends.